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Newegg Launches Same-Day Delivery in Los Angeles

Online marketplace Newegg this week rolled out same-day delivery service to customers in the Los Angeles area, joining the ranks of giants like Amazon, Google and Walmart.

Newegg customers who live within 50 miles of the company’s City of Industry, CA distribution center – also the location of its headquarters – are eligible for same-day delivery. They just have to place an order before 11 a.m., select the “Local Express” option if available, and pay $20 extra. A bright yellow delivery van from the Newegg Express fleet will deliver the item before 6 p.m.

The company says it will test the service in the LA area though Christmas 2014. If successful, it will be expanded to Indianapolis, IN, Edison, NJ, and Memphis, TN – all locations where the company has distribution facilities.

Kunal Thakkar, senior vice president of operations for Newegg, said the company has been considering same-day delivery since early 2014. The LA market made the most sense, he said, due to its proximity to Newegg’s base of operations.

“It has a high density of packages that we deliver on a daily basis, making it ideal for our pilot project,” Thakkar said.

Asked about the decision being demand-driven, Thakkar said there are some Newegg customers who require same-day shipments. “But offering to fulfill those with our own fleet will create more awareness among existing and potential shoppers,” he added.

In addition to improving customer satisfaction, Thakkar said the new express service will help Newegg reduce same-day shipping costs. “That means we can also keep costs low for our customers while providing a benefit, which is always a good thing,” he said.